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Institutions providing finance and support for economic or social development, sometimes backed by several governments.
An institution assesses a project against its financial and development requirements. It can provide longer-term funding, support risks commercial lenders will not readily take, or help attract other investors. Some financing is concessional, meaning more favourable than ordinary market terms; other financing is commercial. The agreement establishes repayment, conditions and how development results will be monitored.
Suppose a hypothetical US$40 million water project combines a US$15 million development-bank loan, US$20 million from commercial lenders and US$5 million of sponsor equity. A guarantee or longer tenor may help make the structure viable. Whether households receive better service depends on construction, operation and pricing; assembling finance does not itself prove that the intended development outcome has been achieved.
JMMB plans regional sustainability bond as funding terms take shape